EU withdrawal

Our role

providing technical advice to the Government to help inform negotiations with the EU and engagement with non-EU countries

working with firms to understand their plans for their future operations

giving the Government technical advice on the EU (Withdrawal) Bill (the Bill)

ensuring we have a robust regulatory system in place on the day the UK leaves the EU

We are also working to manage any other risks arising from EU withdrawal and to ensure we can continue to deliver on our statutory objectives.

The UK notified its intention to leave the EU by March 2019. On December 15 2017 The European Council confirmed that sufficient progress had been made to move to the second phase of negotiations related to transition (the ‘implementation period’) and the framework for the future relationship between the UK and the European Union.

The EU and the UK are now in discussions about a transition period and their future relationship. The expectation is currently that if there is an agreement, firms will be able to continue to benefit from passporting between the UK and EEA during the implementation period.

We remind firms that the UK remains a Member State of the EU and all rights and obligations derived from EU law continue to apply. This means firms must continue to meet their legal obligations and continue with implementation plans for any legislation still to come into effect.

Changes to the regulatory framework

The Government has introduced legislation that will convert existing direct EU legislation into UK law, and preserve existing UK laws which implement EU obligations. The EU Withdrawal Bill would give the Government powers to amend current legislation to ensure that it functions when the UK is no longer an EU member state. The intention is that the same rules and laws will apply on the day after exit as on the day before, as far as possible.

EU firms passporting into the UK

The Government has announced that, if necessary, it will legislate for a temporary permissions regime to enable relevant passporting firms and funds to undertake new business within the scope of their passporting permission. Within that scope the regime will also allow them to continue meeting their contractual rights and obligations and manage existing business. The Government has said it will be for regulators to determine how any such scheme would operate.

In order to identify firms for which a temporary permission may be relevant and support communications with them we are asking EEA firms and funds that passport into the UK to complete a short online survey.

UK firms passporting into EU states after UK withdrawal

Firms based in the UK servicing clients in the EEA should continue to prepare for a range of scenarios. They should discuss these arrangements and the implications of a transition period with the relevant EU regulator. We will keep these expectations under review as negotiations proceed.